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DTN Early Word Opening Livestock       09/21 05:55
   Live and Feeder Futures Braced for Higher Opening

   The cattle complex should open at least moderately higher, supported by
follow-through buying and technical bullishness. Look for lean hog futures to
begin with mixed price action as traders start to position ahead of the
late-month inventory.

By John Harrington
DTN Livestock Analyst



Cattle: Steady-$2 HR   Futures: 50-100 HR   Live Equiv $130.64  - .19*
Hogs:   $1-2 LR        Futures: Mixed       Lean Equiv $ 81.59  unch**

* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue

GENERAL COMMENTS:

   Cattle-buying interest could start to improve Thursday with opening bids
around $104 to $105 in the South and $164 to $165 in the North. Yet it goes
without saying that asking prices are being hiked as we speak, thanks to the
way live futures broke to new highs at midweek. Our guess is that feedlot
managers are now pricing ready steers and heifers around $110 plus in the South
and $172 to $174 plus in the North. Given this new bullish stubbornness,
significant trade volume could easily be delayed until sometime Friday (even
after cow news is released at 2 p.m. CDT). Live and feeder futures should open
at least moderately higher, supported by follow-through buying and technical
considerations.
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